MercadoLibre Soars 33% in a Year: Should Investors Buy the Stock Now?

Core Insights - MercadoLibre (MELI) shares have returned 32.9% over the past 12 months, outperforming the Zacks Retail-Wholesale sector and the Zacks Internet-Commerce industry's growth of 11% and 19.3% respectively [1] - The company has achieved significant milestones in 2024, surpassing 100 million unique buyers and reaching 60 million fintech monthly active users for the first time [2] Investment Plans - MercadoLibre plans to invest $3.4 billion in Mexico in 2025, a 38$6.6 billion, with the credit card segment growing 118% [10] - Assets under management grew 129% to $10.6 billion, driven by the success of the company's yielding account [10] - The company is actively managing credit risk amid rising interest rates and macroeconomic uncertainties [11] Earnings Estimates - The Zacks Consensus Estimate for Q1 2025 earnings is$7.82 per share, revised upward by 13.9%, indicating 15.34% year-over-year growth [12] - The consensus for 2025 earnings is $47.50 per share, up 8%, suggesting 26.03% year-over-year growth [12] Stock Performance - MELI's shares are trading above the 50-day and 200-day moving averages, indicating a potential continuation of the upward trend [13] - The forward 12-month Price/Sales ratio of 3.85 exceeds the Zacks Internet-Commerce industry average of 2.09, reflecting investor confidence in the company's growth potential [15] Future Growth Prospects - The company plans to double its fulfillment centers in Brazil by the end of 2025 and increase same-day delivery capabilities by 40% [17] - MELI is targeting lower-risk customers with larger credit lines to expand market reach, indicating strong long-term growth prospects [17]